The firm’s senior security officer, Thomas Higgins, left about a month ago and has not been replaced.

Kelly has a great rapport with JPMorgan’s senior leaders, in particular Chief Executive Jamie Dimon.

Kelly, who was also commissioner during 1992-1994, has experience in the banking world since he was the managing director for corporate secueity [sic] at Bear Stearns during 2000-2001.

JPMorgan officials refused comment on Kelly. The talk were said to be at a sensitive stage and could still fall apart.

Hiring the City’s Police Commissioner also comes at a time when the sprawling bank is being besieged on a number of fronts. It’s facing the prospect of paying a whopping $13 billion settlement led by the Department of Justice and battling a raft of other legal troubles.